Vietnam.vn - Nền tảng quảng bá Việt Nam

Google increases investment capital to 85 billion USD

VHO - On July 23, Alphabet, Google's parent company, unexpectedly raised its capital spending plan this year to about $85 billion, citing strong demand for cloud computing. The company also forecasts that it will continue to increase spending next year.

Báo Văn HóaBáo Văn Hóa24/07/2025

Google increases investment capital to 85 billion USD - photo 1
Google's parent company unexpectedly raises capital spending plan this year to about $85 billion

Alphabet accelerates investment in cloud computing

Alphabet’s second-quarter earnings report showed it beat Wall Street expectations thanks to new artificial intelligence (AI) features and a solid digital advertising market. “With growing demand for our cloud products and services, we are increasing our capital expenditures,” CEO Sundar Pichai said.

Alphabet shares have risen more than 18% since last quarter. The stock initially dipped in after-hours trading after the earnings report but quickly recovered as management shared more information about strong demand for its cloud business.

Still, the spending increase came as a surprise. “I don’t think anyone saw the change in the 2025 capital spending forecast. Google had a great quarter, but it was overshadowed by the $10 billion in capex,” said Dave Wagner, chief investment officer at Aptus Capital Advisors.

CFO Anat Ashkenazi confirmed that capital spending will continue to increase through 2026, driven by strong demand and growth opportunities. Despite the improvement in server deployment rates, Alphabet still cannot meet customer demand.

Previously, Google expected to spend about $75 billion on capital investment this year – part of the more than $320 billion that Big Tech poured into AI.

The AI boom is driving demand for cloud computing, helping Google Cloud expand its market share even as it trails Amazon and Microsoft. Thanks to its in-house TPU chip and comprehensive AI portfolio, Google Cloud customers grew 28% in the past quarter.

Notably, OpenAI has just added Google Cloud to its list of infrastructure partners, a surprising move as the two sides are rivals in the AI field, showing a trend of diversifying infrastructure to avoid dependence on Microsoft.

However, experts warn that large capital expenditures could affect short-term profit margins, although Alphabet insists it needs to invest heavily to maintain its advantage and maintain investor confidence.

AI Race

AI features like AI Overviews and AI Mode are helping Google Search increase engagement, as it faces pressure from chatbots like ChatGPT. AI Mode has attracted 100 million monthly active users in just two months of launch. Meanwhile, Gemini now has more than 450 million monthly active users.

Advertising, which accounts for about three-quarters of total revenue, grew 10.4% in the second quarter to $71.34 billion, beating LSEG’s forecast of $69.47 billion. “Hopefully, this will ease concerns that ChatGPT could impact Google’s search engine growth,” said Dan Morgan, portfolio manager at Synovus Trust.

Alphabet’s total revenue in the second quarter was $96.43 billion, higher than the forecast of $94 billion. Profit was $2.31 per share, exceeding the expectation of $2.18 per share.

Source: https://baovanhoa.vn/nhip-song-so/google-tang-von-dau-tu-len-85-ti-usd-155596.html


Comment (0)

No data
No data
Admire the million-year-old Chu Dang Ya volcano in Gia Lai
It took Vo Ha Tram 6 weeks to complete the music project praising the Fatherland.
Hanoi coffee shop is bright with red flags and yellow stars to celebrate the 80th anniversary of National Day September 2nd
Wings flying on the A80 training ground
Special pilots in the flying formation to celebrate National Day September 2
Soldiers march through the hot sun on the training ground
Watch helicopters rehearse in the sky of Hanoi in preparation for National Day September 2
U23 Vietnam radiantly brought home the Southeast Asian U23 Championship trophy
Northern islands are like 'rough gems', cheap seafood, 10 minutes by boat from the mainland
The powerful formation of 5 SU-30MK2 fighters prepares for the A80 ceremony

Heritage

Figure

Business

No videos available

News

Political System

Local

Product